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Select Medical's (SEM) Q2 Earnings Beat Estimates, Rise Y/Y

Select Medical Holdings Corporation SEM delivered second-quarter earnings of 38 cents per share. The Zacks Consensus Estimate was of a loss of 6 cents. Moreover, the bottom line improved 15.2% year over year on the back of lower costs and expenses.

Meanwhile, net operating revenues decreased 9.3% year over year to $1.23 billion due to COVID-19 pandemic and a weak performance by the Outpatient Rehabilitation and Concentra segments. However, the top line beat the Zacks Consensus Estimate by 1.1%.

Total cost and expenses fell 5.5% to $1.1 billion owing to lower cost of services, and general and administrative costs.

Adjusted EBITDA dropped 4% year over year to $178.8 million.

Select Medical Holdings Corporation Price, Consensus and EPS Surprise

Select Medical Holdings Corporation Price, Consensus and EPS Surprise

Select Medical Holdings Corporation price-consensus-eps-surprise-chart | Select Medical Holdings Corporation Quote

Critical Illness Recovery Hospital

Operating revenues increased 12.7% to $519.6 million on the back of better patient days.

Adjusted EBITDA for the segment jumped 39.9% to $89.7 million.

Rehabilitation Hospital Segment

Operating revenues were up 5.2% to $168.7 million, led by expanded patient volumes and revenue per patient day. Adjusted EBITDA dropped 8% to $27.6 million.

Outpatient Rehabilitation

Operating revenues plunged 36.2% to $167.1 in the second quarter due to lower visits.

Adjusted EBITDA losses of $6.3 million came against the year-ago quarter’s Adjusted EBITDA of $42.6 million.

Concentra

Operating revenues were down 24.5% year over year to $312.3 million due to a dip in the number of visits.

Adjusted EBITDA declined 45.5% to $41.5 million.

Balance Sheet Position

At the end of the second quarter, the company had $3.3 billion of long-term debt, net of current portion, down 0.9% from the level at 2019 end.

Total equity of $1172 million increased 26.2% from the level on Dec 31, 2019.

Total cash and cash equivalents of $509 million were up 51.8% from the level as of Dec 31, 2019.

Cash flow provided by operating activities as of Jun 30, 2020 was $642 million, increasing sevenfold year over year.

Share Repurchase Update

Select Medical did not buy back shares in the second quarter.

Zacks Rank

Select Medical currently carries a Zacks Rank #4 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Medical Sector Releases

Of the medical sector players that have reported second-quarter results so far, earnings of UnitedHealth Group Incorporated UNH, HCA Healthcare, Inc. HCA and Universal Health Services, Inc. UHS beat the respective Zacks Consensus Estimate.

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